31.Subsequent events

Quillayes Surlat S.p.A., Santiago, Chile

The merger of the Chilean Emmi group Surlat with the competitor Quillayes that was announced on 30 August 2019 was closed, on 15 January 2020. At closing, both parties contributed their existing companies into Quillayes Surlat S.p.A., which was founded in 2019 but not yet operating and which is held by the Emmi subsidiary Kaiku with 51.5 %. Emmi in turn owns 73 % of Kaiku. Quillayes produces cheese, yogurt, butter and cream and in addition is established in selling imported brand products. Important segments of Surlat are UHT milk and other dairy products, particularly in the lactose-free segment. Quillayes generated sales of some CLP 50,000 million (approx. CHF 70 million) in 2018.

Adjustment of principles of consolidation and valuation for goodwill

On 28 February 2020, the Board of Directors decided to change the method and offset goodwill with equity, effective from financial year 2020.

From the balance sheet date until the consolidated financial statements were approved by the Board of Directors on 28 February 2020, no other major events occurred which could have adversely affected the validity of the financial statements for 2019 or which would have to be disclosed.